Friday, November 20th, 2020
Indices: US Stocks closed lower in today’s session, with the Dow Jones Industrial Average falling 219 points or 0.75%. The S&P 500 and Nasdaq slipped 0.68% and 0.42%, respectively. Small-Caps outperformed with the Russell 2000 ending flat on the day (0.07%).
Sectors: 10 of the 11 sectors closed lower. Utilities was the only sector to close higher, but just barely (0.02%). Tech lagged, falling 1.03%.
Commodities: Crude Oil futures moved higher by 1.36% to $42.47 per barrel. Gold futures rose 0.44% to $1,870 per ounce.
Currencies: The US Dollar Index inched higher by 0.11%.
Interest Rates: The 10-year US Treasury yield was unchanged at 0.828%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Today’s Chart of the Day was shared by Frank Cappelleri of Instinet (@FrankCappelleri). It’s a daily bar chart of the US Dollar Index ($DXY) over the past six months. Frank points out that the Dollar has been stuck in a range between 92 and 95 since July. It’s trading below its 50, and 200-day moving averages, indicating the path of least resistance is lower. A weaker US Dollar is bullish for risk assets like Large-Caps, Emerging Markets, Commodities, and even Bitcoin. In a comment to The Chart Report, Frank said, “A lot of Dollar-sensitive areas of the market have already broken out ahead of a breakdown in the Dollar. So if we do see the Dollar resolve lower here, it could potentially fuel those breakouts even higher.”
Quote of the Day
“A stumbling-block to the pessimist is a stepping-stone to the optimist.”
– Eleanor Roosevelt
Market Breadth Suggests Further Upside for Stocks – See it Market
David Keller points out that breadth is confirming the breakout in Stocks.
Where Do We (Investors) Stand? – David Cox
In this quick video, portfolio manager David Cox highlights some noteworthy technical developments to be aware of.
Bitcoin and Gold: Bullish Cup and Handle Patterns in Progress – Kimble Charting Solutions
Chris Kimble highlights some similarities between Gold and Digital Gold (Bitcoin).
Stock Market Video Analysis for Week Ending 11/20/20 – AlphaTrends
Brian Shannon reviews this week’s price action and highlights some key levels to watch next week.
The Year-End Melt-Up – The Reformed Broker
Here’s a great podcast with Josh Brown, John Roque, and Joe Terranova. They discuss the recent strength in Small-Caps, the breakout in Japan, weakness in the US Dollar, and more.
Sure, stocks may be down a little this week, but this market is getting healthy 💪🏻
90% of S&P 500 stocks are now above their 200-day moving averages (highest % in 6 years).
Energy, industrials, materials and financials are leading this week, too.
— Callie Cox (@callieabost) November 20, 2020
— Michael Turvey (@MikeTurvey_TDA) November 20, 2020
— J4 (@J4_doji) November 20, 2020
While the S&P 500 continues to test resistance at 3600, the cumulative advance-decline lines demonstrate broad participation and an established uptrend. Here we review why this chart speaks to market upside. https://t.co/TwtsaV2veL $SPX $SPY pic.twitter.com/ZmAYKogtRL
— David Keller, CMT (@DKellerCMT) November 20, 2020
$IWM closed green today and the forest looks like this.
Upside like you/we can't even imagine. pic.twitter.com/UjXwWgAThS
— Steve Deppe, CMT (@SJD10304) November 20, 2020
Small caps have surged MTD on vaccine news, better than expected earnings and improving economic data. Small caps also have the best seasonal tailwinds behind them for the next few months. #SmallCaps pic.twitter.com/yemtWRf9NV
— Matt Harris, CMT (@MattHarrisCMT) November 20, 2020
High Beta vs. Low Beta… new recovery high. pic.twitter.com/I5VBSITe8N
— Strategas (@StrategasRP) November 20, 2020
if you are a bond bull… the weekly chart looks very interesting pic.twitter.com/Rh5ug273M4
— 𝕮𝖍𝖎 (@chigrl) November 20, 2020
— Tarek I. Saab (@FibLines) November 20, 2020
What is copper telling us? Pricing in infrastructure in 2021? The Dr. is right on the 2018 "global synchronized growth" highs, very far from the September 2019 (Brexit – Trade War), "global synchronized slowdown" levels. pic.twitter.com/2s7ZvIHLkV
— Lawrence McDonald (@Convertbond) November 20, 2020
— jeroen blokland (@jsblokland) November 20, 2020
— Willie Delwiche, CMT, CFA (@WillieDelwiche) November 20, 2020